New Service Opportunities for Specialty Dealers
Even with expert installations, stuff breaks. Most consumer electronics these days are not intended to last more than a few years. It's very sad, but real. Maintaining complex systems (including networks) is a very profitable business opportunity. Huge companies like Best Buy and Plum Choice are jumping into what will become a multi-billion dollar industry - fixing broken stuff. Smart CEDIA members know that client relationships continue to be profitable beyond the 'completion' of the project. These projects, and relationships, are never really complete.
Dave Pedigo, Senior Director of Technology, CEDIA: We feel that moving forward, recurring revenue in service will be critical for many companies for them to remain viable in what is a challenging market where margins are down and commoditized products are influencing market conditions. Certainly, home networking, remote monitoring and management, and home health - all those areas have potential for recurring revenue.
It's just a mindset, more than anything else, that our members have to get into - that they should be working on recurring-revenue business models, because it's the way to have a long-term, sustainable company.